The State of Kansas offers NO INCOME TAX for LLCs, LLPs, Subchapter S Corps and Sole Proprietors. Additionally, the State has no inventory tax, no franchise tax, a payroll withholding tax retention program, and sales tax exemptions.
Kansas also offers a High Performance Incentive Program (HPIP), which provides a 10% tax credit on the qualified capital investment of an eligible company. Qualified capital investment can include the purchase or lease of a facility or equipment, remodeling or build-out costs, fixtures, furniture and computers. Equipment transferred to Kansas from out-of-state is also credited at the original acquisition cost. The minimum investment threshold to qualify for HPIP at Great Plains is $50,000.
Eligible Kansas businesses are also allowed to claim an expense deduction for business machinery and equipment placed into service in Kansas. This is a one-time deduction for each qualified purchase of machinery and equipment in the year that it is placed in service.
Commercial and industrial machinery and equipment acquired by qualified purchase or lease, or transferred into the state, is exempt from state and local property tax. The exemption pertains to machinery and equipment used in the expansion of an existing facility or the establishment of a new facility. The exemption covers machinery and equipment used in manufacturing or warehousing/distribution, commercial equipment, computers, desks and chairs, copiers and fax machines.
SUMMARY OF KANSAS TAXES
REAL PROPERTY TAX CALCULATION
The Labette County Appraiser is responsible for setting appraised value on Real Property.
Appraised Value x Classification Rate = Assessed Value x Mill Levy = Property Tax
Great Plains is located outside of any city limits so your business will never have an additional city tax burden that many of your competitors are subjected to.